U.S. stock futures plummetted this morning, pointing to a sharply lower open. S&P 500 and Dow Jones Industrial Average contracts actually reached their daily limit down and were limited to stop contracts. The Nasdaq contracts were trading just above their limits too. The indices dove by more than 6% on concerns over the global economy. Stocks in Asia and Europe tumbled as global economic slump will no doubt crimp earnings and as the financial crisis is seen infecting the broader economy. The Nikkei 225 plunged over 9% in Japan. Meanwhile, The yen climbed to a 13-year high against the dollar as investors shunned higher-yielding assets and oil retreated further below $65 a barrel despite OPEC cuts. Existing home sales for Septmber are on tap this morning.S&P 500 futures fell 60, or 6.6%, to 855.2 as of 7:19 a.m.EDT. Dow futures dropped
General Motors Corp. (NYSE: GM) shares are dropping over 13% in pre-market trade to $5.30 as concerns over its solvency increased. As Toyota (NYSE: TM) reported its first decline in years and as its attempt to merge with Chrysler are meeting roadblocks, traders are concerned about GM's health. GM has just announced more job cuts Thursday. Ford Motor (NYSE: F) shares are also down over 13% in pre-market action to $1.73 as investors have much the same concerns with Ford as they do with GM.
Microsoft Corp. (NASDAQ: MSFT) shares are down 6% in pre-market trading after the software giant reported record earnings that beat estimates. Microsoft's guidance for the current quarter was weaker than Wall Street was expecting.
Apple Inc. (NASDAQ: AAPL) shares are also down in pre-market trade -- 7.4% to $91. While there hasn't been any specific news on Apple, Samsung Electronics Co. reported a 44% drop in net earnings, which could be an indication to how there's no escape from the slump in the global economy. Intel (NASDAQ: INTC) joined the hammering of tech as its shares declined over 6.5% in pre-market trading.
Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) each tumbled 7.7% and 5.7% respectively as the priced of oil and gas fell.
Going over the DJIA components most stocks are trading down between 4%-13% pre-market action.
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Reader Comments (Page 1 of 1)
10-24-2008 @ 8:38AM
JCH said...
The free market has no brain. Okay? 'nuff said.
This is stupid as heck.
10-24-2008 @ 7:40PM
Warren said...
The market is running on pure emotion at the moment. Math has nothing to do with it. At all.
Give it a few months to find it's brain again. There's no point in trying to ask "why?" as the market runs around the room screaming. Let it calm down.
10-24-2008 @ 10:10AM
JCH said...
Basically, I agree with you as to the likely future, but the market can never have a brain, and it never has had one.
The rational free market is a just a big a myth as heaven or the tooth fairy.
10-24-2008 @ 1:19PM
Beltway Greg said...
Actually the market has a brain but unfortunately it's controlled by humans. The use of the word "massacre" is proof of how emotion rules the human being. Do you really believe we'll go down to 5000? I can't believe we've gotten this far below 10,000. But it's a mistake. Just keep shorting against your largest most stable positions and you'll be fine. IBM beat, Microsoft beat, Apple beat, JNJ beat, we'll survive.
Beltway Greg